Provincial funding targets economic resilience and export diversification in Northern Ontario
By Canadian Business Desk
The Ontario government is allocating $500,000 to support workers and industries in Sault Ste. Marie affected by ongoing U.S. tariff pressures, as part of a broader effort to strengthen economic resilience and reduce dependence on cross-border trade.
The funding, delivered through the Trade-Impacted Communities Program (TICP), will contribute to the development and execution of the city’s $550,000 Foreign Direct Investment (FDI) Strategy. The initiative is designed to attract new investment, expand export opportunities, and diversify supply chains in response to shifting global trade dynamics.
“Regional communities and local industries are essential to our province’s economic fabric, which is why our government will continue to ensure they have the tools needed to remain resilient in the present and competitive for the long term,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “We look forward to seeing Sault Ste. Marie’s Foreign Direct Investment Strategy build on the region’s longstanding reputation as an industrial hub and support the diversification of their exports.”
Strategy aims to reduce reliance on U.S. markets
Sault Ste. Marie has historically relied on exports to the United States, particularly in steel, fabrication, and forestry sectors. However, recent tariff measures have disproportionately affected the local economy, prompting the need for a more diversified approach to trade and investment.
The city’s FDI strategy will focus on opening access to new international markets while strengthening domestic supply chains. It also aims to position the region to participate more actively in key growth sectors, including defence, aerospace, critical minerals processing, and advanced manufacturing.
“This investment comes at a critical time for Sault Ste. Marie, with workers and the broader local economy continuing to feel the impacts of trade uncertainty,” said Matthew Shoemaker, Mayor of Sault Ste. Marie. “With the province’s support, the City is advancing a Foreign Direct Investment Strategy that will strengthen our competitiveness, attract new investment and open the door to diversified markets. This is an important step toward building a more resilient, future-ready economy for our community.”
Part of broader tariff response strategy
The TICP is part of Ontario’s nearly $30 billion tariff relief and economic support plan, introduced to help communities and industries navigate disruptions caused by global trade tensions. The $40 million program specifically targets regions that have been disproportionately impacted by tariffs, offering funding for projects that enhance competitiveness and resilience.
In addition to supporting investment attraction strategies, the program encourages supply chain diversification and the development of new trade partnerships beyond the U.S. market. It operates alongside other provincial initiatives, including the Ontario Together Trade Fund and the Protect Ontario Financing Program.
Since its launch, the TICP has received more than 80 applications from municipalities, economic development groups, and industry organizations across the province. Applications under one funding stream remain open on a rolling basis, while another stream closed in September 2025.
Local industry remains central to provincial priorities
The investment underscores the province’s ongoing commitment to protecting industrial jobs in Northern Ontario, particularly in sectors vulnerable to trade disruptions. Sault Ste. Marie remains a critical hub for steel production, with companies such as Algoma Steel playing a key role in the regional economy.
Ontario has previously partnered with the federal government on a joint $500 million investment to support Algoma Steel’s transition and competitiveness in the face of tariff challenges.
As global economic uncertainty persists, provincial officials say targeted investments like the Sault Ste. Marie FDI strategy are essential to ensuring long-term stability. The government also continues to emphasize reducing regulatory barriers and improving investment readiness across priority sectors.
The latest funding announcement signals a continued shift toward economic diversification and resilience-building in trade-exposed communities, as Ontario seeks to position itself more competitively in an evolving global marketplace.